[Senate Hearing 107-438] [From the U.S. Government Publishing Office] S. Hrg. 107-438 NOMINATION HEARING FOR ELSA A. MURANO AND EDWARD R. McPHERSON ======================================================================= HEARING before the COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION __________ SEPTEMBER 26, 2001 __________ Printed for the use of the Committee on Agriculture, Nutrition, and Forestry Available via the World Wide Web: http://www.agriculture.senate.gov U.S. GOVERNMENT PRINTING OFFICE 79-499 WASHINGTON : 2002 ________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512-1800 Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001 COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY TOM HARKIN, Iowa, Chairman PATRICK J. LEAHY, Vermont RICHARD G. LUGAR, Indiana KENT CONRAD, North Dakota JESSE HELMS, North Carolina THOMAS A. DASCHLE, South Dakota THAD COCHRAN, Mississippi MAX BAUCUS, Montana MITCH McCONNELL, Kentucky BLANCHE L. LINCOLN, Arkansas PAT ROBERTS, Kansas ZELL MILLER, Georgia PETER G. FITZGERALD, Illinois DEBBIE A. STABENOW, Michigan CRAIG THOMAS, Wyoming BEN NELSON, Nebraska WAYNE ALLARD, Colorado MARK DAYTON, Minnesota TIM HUTCHINSON, Arkansas PAUL DAVID WELLSTONE, Minnesota MICHEAL D. CRAPO, Idaho Mark Halverson, Staff Director David L. Johnson, Chief Counsel Robert E. Sturm, Chief Clerk Keith Luse, Staff Director for the Minority (ii) C O N T E N T S ---------- Page Hearing(s): Nomination Hearing for Elsa A. Murano and Edward R. McPherson.... 01 ---------- Wednesday, September 26, 2001 STATEMENTS PRESENTED BY SENATORS Harkin, Hon. Tom, a U.S. Senator from Iowa, Chairman, Committee on Agriculture, Nutrition, and Forestry........................ 01 ---------- WITNESSES McPherson, Edward R., of Dallas, Texas, to be Chief Financial Officer, United States Department of Agriculture............... 04 Murano, Elsa A., of Bryan, Texas, to be Under Secretary for Food Safety, United States Department of Agriculture................ 02 ---------- APPENDIX Prepared Statements: McPherson, Edward R.......................................... 16 Murano, Elsa A............................................... 12 Document(s) Submitted for the Record: McPherson, Edward R., Biography.............................. 47 Murano, Elsa A., Biography................................... 20 Opposition Letter for the Nomination of Elsa A. Murano....... 69 ---------- NOMINATION HEARING: ELSA A. MURANO AND EDWARD R. McPHERSON ---------- WEDNESDAY, SEPTEMBER 26, 2001 U.S. Senate, Committee on Agriculture, Nutrition, and Forestry, Washington, DC. The committee met, pursuant to notice, at 12:35 p.m., in room SD-106, Dirksen Senate Office Building, Hon. Tom Harkin, [Chairman of the Committee], presiding. Present or Submitting a Statement: Senators Harkin and Lugar. The Chairman. I would like to bring before the committee Dr. Elsa Murano and Mr. Edward McPherson. I as you both to stand and raise your right hand. Do you both swear or affirm that the testimony you are about to provide is the truth, the whole truth and nothing but the truth, so help you God? Mr. McPherson. I do. Dr. Murano. I do. The Chairman. Thank you. You may be seated. I am required to ask a question of both Dr. Murano and Mr. McPherson. Do you agree that, if confirmed, you will appear before any duly constituted committee of Congress, if asked to appear? Ms. Murano. I do. Mr. McPherson. I will, yes, sir. The Chairman. Thank you both very much, and thank you for your patience here today. STATEMENT OF HON. TOM HARKIN, A U.S. SENATOR FROM IOWA, CHAIRMAN, COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY First, I want to welcome Dr. Elsa Murano, President Bush's nominee to be Under Secretary for Food Safety at the U.S. Department of Agriculture. The Under Secretary for Food Safety is this country's highest-ranking food safety official. It is one of our top scientific and public health appointments. It is a position that is critical to ensuring the safety of our food supply from contamination, either accidental or intentional. This is a relatively new position. The 1994 USDA Reorganization Act consolidated the USDA's food safety activities within the Food Safety and Inspection Service and created the Under Secretary for Food Safety position. The Under Secretary position was created by Congress to elevate the importance of food safety at USDA. The reorganization recognized that FSIS was an essential public health regulatory agency and a vital part of our public health system. It is a position that must be filled by a person with solid public health and scientific credentials, and I think the administration has found just such a person in Dr. Murano. Dr. Murano is a recognized expert in food safety and has held a variety of leadership positions in the field. Most recently, Dr. Murano has been a professor at Texas A&M University and Director of its Center for Food Safety. Of greatest interest to me, however, was the five years that Dr. Murano spent at Iowa State University, my alma mater, at the linear accelerator facility. This, again, is something which I believe can be very important not only to our food safety, but for exports as well. We also want to welcome Mr. McPherson, to be the Chief Financial Officer for the USDA. Again, you have been nominated to an important position. As CFO, you will have responsibility for achieving effective financial management for the Department. This will be a huge challenge. The USDA does not have strong corporate financial systems. Because of this and other reasons, USDA has not been able to achieve a ``clean audit.'' It is one of only a few departments that carries this mark of distinction. Mr. McPherson, you have a job ahead of you, but I have read your credentials and your background, and it is obvious that you bring the right credentials and the right background to this position. We welcome both of you to the committee, and I will yield to Senator Lugar for any opening comments. Senator Lugar. Thank you very much, Senator Harkin. I just have one question of each of the nominees, if that is permissible at this point in our hearing. The Chairman. We want to have them make an opening statement first. Senator Lugar. Oh, of course. I am sorry. We got ahead of ourselves. You have not testified yet. I commend both the nominees and look forward to your testimony. The Chairman. Thank you. I would recognize Dr. Murano now. Again, your full statements will be made a part of the record in their entirety and if you could just summarize those, we would deeply appreciate it. Dr. Murano. STATEMENT OF ELSA A. MURANO, OF BRYAN, TEXAS, TO BE UNDER SECRETARY FOR FOOD SAFETY, UNITED STATES DEPARTMENT OF AGRICULTURE. Dr. Murano. Thank you, Chairman Harkin and Ranking Member Lugar, distinguished members of the committee, but there is nobody else here except the two of you. I am greatly honored and humbled to appear before you today as President Bush's nominee for Under Secretary for Food Safety at the United States Department of Agriculture. I would like to publicly thank the President and Secretary Ann Veneman for their support and for their trust in nominating me for this position. I am a native of Havana, Cuba. My family and I emigrated to the United States about 40 years ago. As a Cuban American, I can proclaim to you without hesitation that we live in the greatest country on the face of the Earth. America opened her arms to Cubans fleeing Castro's regime, allowing me the incredible opportunities that have led to my appearing before you today. On behalf of my family and countless Cuban Americans, I thank the United States of America, my country, for standing up for freedom and for the generosity and indomitable spirit of her people. It was 1961 when my parents, my brother George and I left our homeland, settling in Puerto Rico, where I attended an elementary school. A few years later, we moved to Miami, Florida, where I worked my way through school, graduating with a B.S. in biology from Florida International University. I developed a deep interest in the medical field and in public health, which guided me to earn an M.S. degree in anaerobic microbiology and a Ph.D. in food science from Virginia Tech. I also developed an appreciation for the field of food microbiology, and decided to dedicate my life to the study of bacteria which, although microscopic, are capable of causing so many cases of food-borne illness each year in our country and throughout the world. As you know from reading my background documents, I have been a researcher and teacher in the field of food safety, both at Iowa State and Texas A&M Universities, and I think we know, Mr. Chairman, which of those two you think is the best. My research efforts have led me to investigate organisms like Escherichia coli 0157:H7, Listeria monocytogenes, and salmonella--all the bad actors that have become household words. My approach in this work has been to determine where these pathogens are found, and to investigate safe methods that can be used to control or eliminate them from farm to table. Throughout my career as a researcher, I have become keenly aware of the importance of sound scientific studies and how these can help provide us with the critical information we need to make decisions that will truly reduce the risk of food-borne illness. I have also observed the need for a proactive approach, one that does not react to food safety crisis, but rather anticipates risks. The events of September 11 are a reminder to all of us that we need to be diligent in order to prevent threats to our food supply as much as humanly possible. As an educator, I have seen how education can become one of our most effective tools in combatting food-borne illness. Although I am aware of the great strides that have been made in this arena with the FightBac campaign, there is still much to be done. My work in Latin America on HACCP training has opened my eyes to the importance of helping those countries, of whom we are a customer, to improve their food safety prevention systems. I have also come to believe very strongly that inclusion of all stakeholders working to attack the issues rather than each other is the key to our success in decreasing the risk of food-borne illness. We are all in this together--government, and I mean not only the agencies within USDA but other agencies that play a role in food safety; consumers, industry, educators and scientists. It is only through a team approach, working in total transparency and standing on the truth of science, that we will accomplish our goals for America of having the safest food supply possible. Thank you, Mr. Chairman. I look forward to working with you and the members of the committee, if they ever return, on these issues. Right now, I would be very happy to answer any questions. [The prepared statement of Dr. Murano can be found in the appendix on page 12.] The Chairman. Thank you, Dr. Murano. The only thing I would take issue with you on is that some of those really aren't household words; I still can't pronounce them. Now, we turn to Mr. McPherson. Mr. McPherson, again, your statement will be made a part of the record in its entirety. Please proceed. STATEMENT OF EDWARD R. McPHERSON, OF DALLAS, TEXAS, TO BE CHIEF FINANCIAL OFFICER, UNITED STATES DEPARTMENT OF AGRICULTURE Mr. McPherson. Thank you, Mr. Chairman, Senator Lugar, members of the committee. I am honored to be here as the President's choice for Chief Financial Officer of the Department of Agriculture. I appreciate the opportunity to be with you today so as to listen carefully to what is important to you in serving every constituent of the Department of Agriculture with skillful financial management. My preparation for today's meeting actually began over 30 years ago, in Washington, when I served as a young Navy officer in an intense assignment with the Defense Intelligence Agency. Next, I gained insight into the Federal sector while with Booz- Allen and Hamilton Public Administration Services. Subsequently, I spent 15 years as a corporate executive in the private sector, including serving as chief financial officer for two large and active New York Stock Exchange companies. For the past 13 years, as Chief Executive Officer of InterSolve Group, my business has been executing the commercial agenda of prominent American leaders by leading high-performing project teams of Just-In-Time Talent. Effective financial management at the Department of Agriculture requires focus on the following issues: internal control of accounting operations and data integrity based on sound processes and integrated computing systems; solid cash management and lending and credit practices; a culture which values customer service and embraces the accountability of service-level agreements and key performance factors; resourceful deployment of financial assets and human capital; useful and timely management information enabling anticipatory decisionmaking and action; and, finally, clear communication and partnership with those served by the Department of Agriculture and those entrusted with setting policy, providing funding, and overseeing its operations. The Department of Agriculture has made progress in these important areas. If confirmed, my role is to reduce the time required, lower the risk, and achieve an attractive return from this ongoing effort, resulting an in Agriculture Department as known for skillful financial management as it is for the successes of its missions and programs. While one person with courage is often a majority, my experience is that sustained high performance comes from the collaborative effort of people energized toward common goals. If confirmed, I will draw on my experience and judgment as a corporate financial executive, as a successful owner and entrepreneur, and my strong belief and trust in people to achieve the financial management goals of the Department. I am grateful for the love of my wife, Sally, for 32 years, and of our children, Beth and Edward, all who support me in my endeavors and help invent my life. If confirmed, I look forward to working together with each of you in achieving the results you seek in the vital work of the Department of Agriculture. Thank you, Mr. Chairman. [The prepared statement of Mr. McPherson can be found in the appendix on page 16.] The Chairman. Very good. Thank you, Mr. McPherson. Senator Lugar. Senator Lugar. Thank you very much, Mr. Chairman. Dr. Murano, earlier this year the committee conducted a hearing to receive testimony from Inspector General Viadero and Administrator Billy regarding the operation of the Food Safety and Inspector Service in the New York City and New Jersey areas. No less than 10 criminal investigations are reportedly underway at this time with regard to all of this. If you are confirmed, it would be my hope that within 30 days you might provide the committee with a written plan for a strategy to review the entire operation of the Food and Safety Inspection Service, with particular reference to what we have already looked into in New York and New Jersey, but more broadly your own views of the rest of the Service. Are you aware of the investigation in New York and does it seem reasonable that within 30 days you could give us some indication of your plan of action? Dr. Murano. Senator, I am somewhat aware of that case. Definitely, if I am confirmed, one of the important things to do is to assess the state of the agency. When you consider that one of the most important things that the agency does is to inspect meat and poultry, it behooves us to assess the effectiveness of our inspection system. If I am confirmed, I will do my best to work with you and anybody else on the committee, and certainly I know that I will have the full cooperation of everybody at the agency behind me to come up with a document as soon as I can to address these issues and make sure that we are always vigilant, that our inspectors are doing their job as they are supposed to. Senator Lugar. Well, I thank you for that response. Obviously, your nomination and confirmation are important so that we can finally close that loop of leadership and not leave a vacuum, because these ongoing investigations are important in terms of the integrity and credibility of our system. Mr. McPherson, the Chairman has raised in his introduction of you the unfortunate fact that a clean audit has not come from the United States Department of Agriculture. You have certainly expressed in a very forthright way your own experience in business and your views with regard to what you anticipate you will do at USDA. Specifically, having examined the situation, do you believe that in a reasonably short period of time a clean audit will be possible; in other words, the blemish that has been mentioned quite appropriately by the chairman will be removed and the Department over which we have oversight finally comes into its own in terms of fiscal integrity? Mr. McPherson. I do believe a solution is possible, Senator, and the solution to fixing the Department's problems with financial statements and enhancing the management information that is available to all associates to lead and manage the enterprise will include the following elements: No. 1, continuing strengthening the Department's internal controls and data integrity by converting to improved core accounting systems and the related work processes, especially those focused on cash management, and promising tools such as the data warehousing capability that is emerging that does support the preparation of the consolidated financial statements; No. 2, as a practical matter, focusing on the important elements of financial management at USDA which, as you know, range from credit reform that addresses the Department's lending and credit function to real property. In other words, my focus is adding value to the actions where large amounts of money are involved. No. 3, having sufficient capacity in place in terms of human talent. There are a number of very capable and competent people that are working on these issues. The task going forward is to augment them with the talent that have clear roles, specific task plans, and the resources to produce sustainable results cost-effectively. As I suggested, my role is to reduce the time it takes to do those things, and lower the risk and get an attractive return on the investment being made in these initiatives. Senator Lugar. Well, I appreciate those goals and your articulation of them. In due course, however, we will get back to whether we have a clean audit. The reason I raise this is that over 15 years the Chairman and I have listened to many Secretaries of Agriculture and their subordinates, and we have found over the course of time, at least in the initial stages, they could not even identify how many employees there were in USDA, quite apart from the descriptions of stovepipe mentalities, computers that did not express themselves to each other, and during the Y2K crisis a whole raft of obsolescent computers that finally were scrapped. Now, these situations happen in a large bureaucracy of 100,000-plus people all over the country. It is not unusual that there are accounting difficulties in terms of everybody finding out where it all is. We are asking you to do that on behalf of the Department and on behalf of good Government. I appreciate your own analysis and I wish you well as you try to get to the clean audit. Mr. McPherson. I appreciate, Senator Lugar, your articulation of the result that you seek and we all seek. The Chairman. Thank you very much, Senator. Mr. McPherson, that was really the only question I had for you, and you responded quite forthrightly to that and I hope we can get to that point of having a clean audit as soon as possible. Dr. Murano, with the recent events of two weeks and one day ago, I hope we don't get tunnel vision in this country and think that we only are going to have to look at airlines and airplanes in terms of terrorist activities. Certainly, one vulnerable point for us is, of course, in our water and food supply. In terms of developing the proper approaches, not just towards response but to prevention and interdiction at an early point in time, it is going to be vital that we develop this, and you will be playing an important and key role in this effort. When you get to the Department, I hope that you will report back to this committee as soon as possible the need for any additional resources or authorities that you think USDA needs to ensure the biosecurity of our food and food supply systems in this country. I have been thinking about it in terms of HACCP. When we developed HACCP over all those years, there are certain points in our food processing where you know you are not going to get contamination and there are certain critical points where it can enter. That is what we wanted to look at. If you can address those points, then you are fairly certain that you are going to have a clean product at the end. It seems to me that the same applies to our food security. There are critical access points in the whole spectrum of our food supply system in this country. There are critical access points where terrorists and others who want to interrupt and strike terror in people might be able to do something. We need to identify those critical access points and make sure that we have the security at those points. I don't want to raise any undue fears, but I think we have to be honest about it and we have to address it forthrightly. If terrorists akin to those who did that awful thing two weeks and a day ago were to do something to our food supply that just raised a serious question in people's minds, it could be devastating for our economy and for our people. We have to be sure that we have those points covered, and that is where I look for your input and your suggestions. We need something soon. Maybe something exists--I don't know--in terms of a plan of action or in terms of preventative measures. Now, again, we focus on the response. What will be the response if this happens? I want to get in front of that. What do we do before that? We have to have both. If there is such a plan, I would like to know about it. If not, I encourage you to work with us. Like I said, if you need any additional resources or authorities, I ask that you come back to us as soon as possible so we can give you whatever you might need. The second thing is on the pathogen standards. As you know, when the rule was published in 1996 on HACCP and pathogen reduction, we were moving ahead. The pathogen reduction part of it was struck down in the Supreme Beef case, in Texas. For some time now, we have been asking the industry to get its act together and to provide us with some form of a solution to this that we could move ahead on. I think we have been very patient. I think the Chairman before me, sitting next to me, was very patient on that. I have been very patient on that. We have all been asking the industry to give us their best advice and suggestions on how we address this. Well, it is just not happening and so we need to have something. One of your first tasks will be to decide how to approach updating the salmonella performance standard. It is something I think that we have to attend to, and I hope we can do that before Congress adjourns this year. However, I don't know when that is going to be. At the end, the standards have to be enforceable. Whatever they are, they have got to be enforceable, and so I just have a couple of questions. Do you support having enforceable microbiological performance standards, including pathogen reduction standards, where at some point the Secretary of Agriculture withdraws an inspection for failure to meet them? Dr. Murano. Mr. Chairman, let me begin by saying that having been a microbiologist for 17 years, I truly do appreciate what microbiological standards are. I do also believe very strongly that we need to have standards in order to determine whether what we are doing or what industry is doing at the processing level is actually accomplishing the production of the safest food possible. There is no question about that in my mind. There is a study commissioned of the National Academy of Sciences that is due to begin very soon to look exactly at that issue that you just raised--the appropriate application of performance standards. It is a crucial issue. It is one that is going to help us tremendously to have the input of the scientific community, top scientists working on this very issue, to tell us what does science say that performance standards are, what should they be, salmonella standards or any other standards for that matter, and I look forward to that report. Prior to that report, I am also aware that the Food Safety and Inspection Service, through their National Advisory Committee on Microbiological Criteria for Food--they have commissioned that advisory committee to also weigh in on this issue. That committee's work will take a lot less time than the National Academy of Sciences study, which is a good thing because I agree with you. We need an answer to this as soon as possible because a lot is riding on it. I am confident this is the right way to approach. I know a lot of the scientists on both the National Advisory Committee and the NAS panel very well. I have complete confidence that they will do the right thing in terms of approaching it from a science base and be able to give us some guidance as to what we should do. The Chairman. Do you believe there is a role for pathogen standards in a HACCP-based regulatory system? Dr. Murano. Mr. Chairman, as I said, I believe that there is a role for pathogen standards. The HACCP system itself, if you look at it, relies on microbiological testing, which is at the base of standards, to verify if a critical control point is under control, to verify or validate the entire HACCP plan that a plant has. It is a crucial part of the system. The Chairman. I appreciate that. Thank you, Dr. Murano. Those are the questions I had. Do you have any followup? Senator Lugar. No. The Chairman. Well, I thank you both for your past contributions both in the private and public sector and on the research end. I thank you for your willingness to give of your time and your expertise to devote to public service. I think it is highly commendable. I hope that before we adjourn this afternoon in the Senate, we will be able to get both of your nominations through and have you at the Department with all of the power and authority that you need. With that, I want to thank you for being here. The Chairman. I want to especially thank Senator Lugar for all the time he has spent here today. Senator Lugar, as you know, is also on the Foreign Relations Committee and very heavily involved in all of the negotiations and things that are going on right now with the administration and with other countries. I think it is a mark of his intense interest in agriculture and our food system that he would spend so much time here today. I just want you to know I personally appreciate it very much, Senator Lugar. With that, the Committee on Agriculture will stand adjourned until the call of the Chair. 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